Ford's Slow Go On Jag And Rover
Ford (F) management won’t say this, but it is in no rush to sell Jaguar or Range Rover until next year. Mahindra & Marhindra, the Indian car conglomerate,TPG Capital, Cerberus Capital Management, Ripplewood Holdings and One Equity Partners. Tata Motors of India are all kicking the tires.
Mahindra builds SUVs, so Rover would be a good match.
But, for now, Ford is probably just going through the motions. The value of the two car units is pegged at $3 billion to $6 billion, with most estimates at the low end. Ford does not want that money in its bank account while it is pleading poverty to the UAW in current contract negotiations.
But, if the UAW allows Ford and GM (GM) to put their pension and healthcare liabilities into a fund run by the union, watch how fast Ford unloads the units to put up its stake.
Douglas A. McIntyre